Why Foot Locker's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of retail shoe slinger Foot Locker (NYS: FL) were looking fleet of feet today as they gained as much as 14% in intraday trading after the company reported first-quarter results.
So what: For the quarter that ended in April, Foot Locker managed some pretty nice-looking numbers. Revenue was up 8.7% year over year to $1.6 billion on a strong 9.7% jump in same-store sales. On the bottom line, the $0.83 in per-share profit was a 38% increase from 2011 and easily above the $0.74 that Wall Street analysts had estimated.
Now what: Foot Locker may not have the cachet of a certain social network that went public today, but investors may want to keep an eye on this company. A lot appears to be going right here as the company makes itself more efficient at home while growing overseas. Margins are increasing and shares are trading at reasonable 14 times expected fiscal-year earnings.
Want to keep up to date on Foot Locker?Add it to your Watchlist.
At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.